Spotsylvania County’s General Obligation bond rating has been upgraded to AAA by Standard & Poor’s. That’s the highest possible rating. County officials say it comes after many years of demonstrating strong financial management through adoption of and adherence to fiscal policies; maintaining ample fund balance; ensuring budgetary flexibility; and sustaining manageable debt levels. The county also holds a AAA rating with Fitch.
A county press release provided highlights from the report:
“We base the upgrade on the county’s long-term history of strong financial operations supported by very strong management policies and practices, including five consecutive years of audited operating surpluses through fiscal 2018.”
“We believe Spotsylvania County’s ongoing developments will help expand the county’s already large and diverse tax base and provide additional revenue-raising flexibility, which should help the county maintain its long track record of positive financial operations and very strong reserve levels.”
“[T]he county’s strong economic base with access to the Washington D.C. metropolitan statistical area (MSA) supports the county’s very strong creditworthiness.”
“The stable outlook reflects S&P Global Ratings’ opinion of the county’s strong performance and very strong management conditions. Furthermore, the county has successfully maintained its very strong budgetary flexibility and liquidity despite cash funding a substantial portion of capital needs. The strong and growing local economy with access to the greater Washington, D.C. MSA provides further stability. Therefore, we do not expect to lower the rating within the outlook’s two-year period.”
Additionally, Fitch and Moody’s affirmed their ratings of Spotsylvania’s GOs at AAA and Aa1, respectively.